Phillips 66 (NYSE: PSX) and Cosan Limited (NYSE:CZZ) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
69.5% of Phillips 66 shares are held by institutional investors. Comparatively, 43.2% of Cosan Limited shares are held by institutional investors. 0.5% of Phillips 66 shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Phillips 66 and Cosan Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Phillips 66 pays an annual dividend of $2.80 per share and has a dividend yield of 3.0%. Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. Phillips 66 pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cosan Limited has increased its dividend for 5 consecutive years.
Volatility & Risk
Phillips 66 has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Cosan Limited has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.
Earnings and Valuation
This table compares Phillips 66 and Cosan Limited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Phillips 66||$79.20 billion||0.61||$2.21 billion||$3.35||27.96|
|Cosan Limited||$3.84 billion||0.62||$1.23 billion||N/A||N/A|
Phillips 66 has higher revenue and earnings than Cosan Limited.
This is a summary of current recommendations and price targets for Phillips 66 and Cosan Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Phillips 66 currently has a consensus target price of $91.55, suggesting a potential downside of 2.28%. Given Phillips 66’s stronger consensus rating and higher probable upside, research analysts clearly believe Phillips 66 is more favorable than Cosan Limited.
Phillips 66 beats Cosan Limited on 12 of the 16 factors compared between the two stocks.
About Phillips 66
Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses. The Company operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment gathers, processes, transports and markets natural gas, and transports, stores, fractionates and markets natural gas liquids (NGLs) in the United States. The Chemicals segment consists of its equity investment in Chevron Phillips Chemical Company LLC (CPChem), which manufactures and markets petrochemicals and plastics. The Refining segment buys, sells and refines crude oil and other feedstocks at refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products, such as gasolines, distillates and aviation fuels, primarily in the United States and Europe, as well as includes the manufacturing and marketing of specialty products, and power generation operations.
About Cosan Limited
Cosan Limited (Cosan) is a holding company. The Company’s segments include Raizen Energia, Raizen Combustiveis, COMGAS, Cosan Logistica, Lubricants and Other business. The Company’s other business include other investments, in addition to the corporate activities. The Company offers Logistics services, including transportation, port loading and storage of sugar, leasing or lending of locomotives, wagons and other railway equipment, through its subsidiaries Rumo Logistica Operadora Multimodal S.A. (Rumo), logistic segment (Logistic). The Company is also engaged in production and distribution of lubricants, through its indirect subsidiaries Cosan Lubrificantes e Especialidades S.A. (Moove) and Comma Oil & Chemicals Ltd. (Comma), under the Mobil licensed trademark in Brazil, Bolivia, Uruguay and Paraguay, in addition to the European and Asian market using the Comma brand and corporate activities (Lubricants).
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